United Rentals (NYSE:URI) Shares Gap Down on Disappointing Earnings

Key Points

• United Rentals (NYSE:URI) shares gapped down from $991.50 to $950.01 following a disappointing earnings report where they missed consensus EPS estimates by $0.73, reporting $11.70 EPS.
• The company announced a quarterly dividend of $1.79 per share, with an annualized dividend of $7.16 and a dividend yield of 0.8%, reflecting a payout ratio of 18.52%.
• Research reports have seen analysts upgrading their ratings and target prices for United Rentals, with a current consensus rating of "Moderate Buy" and an average price target of $966.47.

Shares of United Rentals, Inc. (NYSE:URI - Get Free Report) gapped down before the market opened on Thursday following a dissappointing earnings announcement. The stock had previously closed at $991.50, but opened at $950.01. United Rentals shares last traded at $967.58, with a volume of 136,820 shares changing hands.

The construction company reported $11.70 earnings per share (EPS) for the quarter, missing the consensus estimate of $12.43 by ($0.73). The business had revenue of $4.23 billion during the quarter, compared to analyst estimates of $4.16 billion. United Rentals had a return on equity of 32.01% and a net margin of 16.11%.The business's revenue for the quarter was up 5.9% on a year-over-year basis. During the same period in the prior year, the firm earned $11.80 EPS. United Rentals has set its FY 2025 guidance at EPS.

United Rentals Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 26th. Stockholders of record on Wednesday, November 12th will be paid a $1.79 dividend. The ex-dividend date of this dividend is Wednesday, November 12th. This represents a $7.16 annualized dividend and a dividend yield of 0.8%. United Rentals's payout ratio is currently 18.52%.

Analyst Upgrades and Downgrades

URI has been the topic of several recent research reports. BNP Paribas set a $900.00 price objective on shares of United Rentals and gave the stock a "neutral" rating in a research note on Tuesday, September 16th. KeyCorp raised their target price on shares of United Rentals from $1,075.00 to $1,120.00 and gave the stock an "overweight" rating in a report on Thursday, September 25th. Baird R W upgraded shares of United Rentals from a "hold" rating to a "strong-buy" rating in a report on Wednesday, October 1st. Truist Financial raised their target price on shares of United Rentals from $952.00 to $1,194.00 and gave the stock a "buy" rating in a report on Wednesday, October 8th. Finally, Citigroup raised their target price on shares of United Rentals from $1,000.00 to $1,080.00 and gave the stock a "buy" rating in a report on Tuesday, September 23rd. Two investment analysts have rated the stock with a Strong Buy rating, twelve have issued a Buy rating, five have given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $966.47.

Institutional Trading of United Rentals

Institutional investors have recently made changes to their positions in the stock. Optas LLC boosted its stake in shares of United Rentals by 0.9% in the 3rd quarter. Optas LLC now owns 1,174 shares of the construction company's stock valued at $1,121,000 after purchasing an additional 10 shares in the last quarter. CreativeOne Wealth LLC boosted its stake in shares of United Rentals by 0.5% in the 2nd quarter. CreativeOne Wealth LLC now owns 2,283 shares of the construction company's stock valued at $1,720,000 after purchasing an additional 11 shares in the last quarter. Great Valley Advisor Group Inc. boosted its stake in shares of United Rentals by 2.9% in the 2nd quarter. Great Valley Advisor Group Inc. now owns 387 shares of the construction company's stock valued at $292,000 after purchasing an additional 11 shares in the last quarter. OFI Invest Asset Management boosted its stake in shares of United Rentals by 6.7% in the 3rd quarter. OFI Invest Asset Management now owns 175 shares of the construction company's stock valued at $167,000 after purchasing an additional 11 shares in the last quarter. Finally, Bank of Jackson Hole Trust boosted its stake in shares of United Rentals by 12.0% in the 2nd quarter. Bank of Jackson Hole Trust now owns 112 shares of the construction company's stock valued at $84,000 after purchasing an additional 12 shares in the last quarter. 96.26% of the stock is currently owned by institutional investors and hedge funds.

United Rentals Trading Down 3.7%

The company's 50-day moving average is $956.38 and its 200-day moving average is $805.28. The firm has a market cap of $61.40 billion, a price-to-earnings ratio of 24.84, a P/E/G ratio of 2.31 and a beta of 1.73. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.80 and a current ratio of 0.86.

United Rentals Company Profile

United Rentals, Inc, through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals and Specialty. The General Rentals segment rents general construction and industrial equipment includes backhoes, skid-steer loaders, forklifts, earthmoving equipment, and material handling equipment; aerial work platforms, such as boom and scissor lifts; and general tools and light equipment comprising pressure washers, water pumps, and power tools for construction and industrial companies, manufacturers, utilities, municipalities, homeowners, and government entities.

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